Expanding DX services for major companies

ROUTE06, Inc. (Headquarters: Shibuya, Tokyo; CEO: Takafumi Endo) announces that it has secured 200 million yen in seed funding from venture capital funds managed by Delight Ventures, Inc. and Genesia Ventures, Inc. The funds raised will be used to invest in hiring professional human resources and R&D of digital products in order to expand the support system for large-scale digital transformation projects and advanced digital product development projects related to OMO (Online Merges with Offline). The Company will use the funds for the following purposes

Background

ROUTE06 envisions 'creating a society where the physical and digital worlds seamlessly connect' in the era of OMO (Online Merges with Offline), where online platforms increasingly integrate with all social and economic activities. The firm is a professional firm established in January 2020 by members with rich experience in digital product planning, development, and business in major IT companies, startups, and consulting firms.

While interest in digital transformation (hereinafter referred to as "DX") has been growing in recent years, the field of system development in Japan is facing various problems that can be barriers to DX. The Ministry of Economy, Trade and Industry's "DX Report: Overcoming the IT Systems "2025 Cliff" and Full-Scale Deployment of DX" (hereinafter referred to as the DX Report) points out that black box and aging existing business systems are major problems, and the multiple subcontracting structures of system vendors are further complicating this situation.

In addition, the development approach and outsourcing contracts for conventional system integration are not necessarily based on the premise of responding to rapidly changing digital business, resulting in a mismatch with client company expectations in various aspects such as proposals, deliverables, and prices, and a large amount of money is spent on maintaining existing aging systems prior to DX. Therefore, a great deal of money is being invested in maintaining the status quo of existing aging systems before DX is implemented. The above DX report also emphasizes the seriousness of the situation, stating that approximately 80% of IT budgets of Japanese companies are allocated to system maintenance and management, and that if this trend continues, economic opportunity losses of up to 12 trillion yen per year (approximately three times the current amount) may occur after 2025.

In response to this situation, we do not rely on outside vendors or offshore development, but rather have a professional team of in-house product managers, engineers, and designers who take a one-stop, agile approach to system planning, implementation, and operation, thereby providing our clients with "in-house We provide our clients with digital products that have the transparency and flexibility of "product quality".

As a "DX partner that creates the best for our clients," we provide solutions in a short period of time and reduce system costs by actively utilizing the latest SaaS and open source software that has a proven track record of implementation in IT companies in Japan and overseas, while eliminating as much as possible functions that end users cannot use or vendor-oriented package implementation. We will contribute to maximizing our clients' digital ROI by providing solutions in a short period of time and reducing system costs.

Services

We offer tailored DX solutions for clients across various industries and sectors, ranging from mid-sized companies to large publicly listed corporations.

1. DX Consulting (Digital Strategy Development and Execution Support)

Provide professional consulting services for DX of existing businesses and launch of new digital businesses.

2. Agile as a Service (Agile development of digital products)

Provide agile development services for the latest digital products (websites, Android/iOS applications, business systems, etc.) from concept design to implementation and operation.

3. Data Platform Integration (collaboration/integration of existing systems) Provides replacement solutions to migrate existing business systems to the latest systems. Support for phased migration through core database construction, API development, and SaaS integration.

Investor Comments

Tomoko Nanba, Managing Partner, Delight Ventures, Inc.

The day we first met, From the day I first met, Endo told me that one day in the future he would like to completely eliminate the pain associated with SI. I remember thinking that this was a seemingly simple but daunting dream. After that, Endo-san joined Delight Ventures as an EIR, and he was really kind and devoted not only to the consideration of his own business but also to the launch of the start-up studio. I became a fan of Endo-san's attitude of always keeping a high perspective and involving the entire organization in solving problems, as well as his attitude of always humbly continuing to learn, and I am very glad that Endo-san is now taking on challenges "now" instead of postponing his dream that he thought "someday in the future. I will support Endo-san's team of faith and passion with all my strength!

Dai Watanabe, Managing Partner, Delight Ventures, Inc.

I was impressed by his visionEndo, the representative of ROUTE06, joined Delight Ventures as an EIR shortly after its launch last year, and has greatly contributed not only to the preparation of his own business launch, but also to the creation of various mechanisms within Delight. He provided useful feedback based on his experience and network, and was a great source of inspiration to our team. I am honored to have been involved in From the day I first met Endo, I was impressed by his visionEndo's new challenge as an entrepreneur from the very beginning, and ROUTE06 is a manufacturing group led by a top-class team with comprehensive strengths in technology, business, and UX. I look forward to working with them as a reliable partner in product development for Delight Ventures' new business startup program, Venture Builder.

Kentaro Nagahara, Principal, Delight Ventures, Inc.

I have known From the day I first met Endo, I was impressed by his vision. Endo from my previous job, and I think it was a very valuable time for us to exchange views closely as entrepreneurs and investors while he was involved in the launch of the fund as an EIR at Delight Ventures. The market we face is large and very challenging, but we are very happy to be able to support From the day I first met Endo, I was impressed by his visionEndo, a trusted entrepreneur, in his new challenge.

Soichi Tajima, General Partner, Genesia Ventures, Inc.

ROUTE06 is a Digital Transformer (DXer) that promotes Digital Transformation (DX) from the roots of industry with its positioning as a next-generation system integrator. Together with From the day I first met Endo, I was impressed by his visionEndo, a serial entrepreneur, and his selected team, we are working to upgrade the operating system of Japanese industry itself, through updating the operating system of Japanese industry itself. We will overwhelmingly increase Japan's industrial competitiveness and presence in the world by updating the OS itself in Japanese industry.

Shunsuke Sagara, Investment Manager, Genesia Ventures, Inc.

In the Japanese IT industry, where SI culture is deeply rooted, it is truly rare to find someone who can design and implement a back-end system to take advantage of UX. I am confident that the ROUTE06 team led by From the day I first met Endo, I was impressed by his visionEndo will be able to create a sustainable system experience as a "DXer", not a SIer, and I am very excited to be a part of the journey with them from the very first step.I am very excited to be a part of this journey.

Directors and Officers

Takafumi Endo (CEO)

After graduating from the Graduate School of Information Sciences, Tohoku University, he worked at the Development Bank of Japan Inc. and Dream Incubator Inc. He then founded Smarby, Inc., where he served as CEO. After the company's acquisition by a major apparel company through an M&A, he became Director, CPO, and CMO at STRIPE DEPARTMENT CO., LTD. Following his involvement as an EIR at Delight Ventures, Inc., he founded ROUTE06.

Hitoshi Matsumoto (Director)

After working at BayCurrent Consulting, Inc., he joined Rakuten, Inc. and Yahoo Japan Corporation, where he was responsible for development and product management, focusing on data platforms such as EC systems, DMPs, and log unification across all services. He subsequently served as Executive Officer and CTO at STRIPE DEPARTMENT CO., LTD. and Executive Officer and Director of Development at Welby Inc., before co-founding ROUTE06.

Tadashi Shigeoka (Director)

Graduated from the Master's program in Computer Science at Kumamoto University. He engaged in various contract developments such as gourmet, real estate, and EC at WEBIMPACT, INC. He then joined Tokyo Otaku Mode Inc. in its early stage, working as a software engineer on cross-border EC services. After serving as Engineering Manager, he co-founded ROUTE06 and became CTO in November 2022.

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